Workday plans to buy the workplace analytics company for $700 million.

Workday announced this week that it intends to acquire Copenhagen-based Peakon ApS. Peakon provides an employee success platform that converts feedback into actionable insights. The two companies have signed an agreement under which Workday will acquire Peakon in an all-cash transaction, according to Workday.

With Peakon, Workday aims to provide organizations with what they call a continuous listening platform. This includes real-time visibility into employee experience, sentiment, and productivity. This insight will help drive employee engagement and improve organizational performance. the company claims.

COVID pandemic has driven the need for Employee Engagement

“The events of this past year have changed the world of work,” Workday states. “These circumstances have forced organizations to rethink HR strategies and continually adapt approaches to engage, support, and retain talent.”

Workday says that this includes “consistently cultivating a two-way dialogue to hear, understand, and respond to employees.”

To meet this moment, Workday and Peakon aim to create a continuous listening platform. This platform will help customers capture real-time employee sentiment. The platform will also facilitate ongoing feedback, they say. This interaction will help Workday customers access personalized, prescriptive recommendations for actions.

Combining technologies to create a better employer-employee interaction

The merged solution will utilize intelligent technology from Peakon that determines and distributes surveys and information to the right person at the right time. They will then combine this information with the comprehensive employee insight in Workday.

In this way, Workday hopes to help leaders continually discover and respond to evolving employee feelings, needs, and behaviors. For example, customers will be able to gain better insights and understanding on employee belonging. This in turn will help them more confidently and consistently adjust plans to foster an inclusive workplace culture.

“Peakon is on the cutting edge of helping organizations turn employee insights into more connected teams and stronger organizations,” said Aneel Bhusri, co-founder and co-CEO, Workday.

“Bringing Peakon into the Workday family will be very compelling to our customers – especially following an extraordinary past year that has magnified the importance of having a constant pulse on employee sentiment in order to keep people engaged and productive.”